Facebook music offering and what it means for iLike

Rumors are circulating that Facebook is planning to launch a new online music service, with TechCrunch pointing out that it could mean bad news for Seattle’s iLike (which has already signed up more than 8 million Facebook members for its music offering.)

Interestingly, at the TiE-Seattle Web 2.0 event last Thursday I asked panelists whether we might see Facebook compete directly with iLike in music.

Others Online Chief Executive Jordan Mitchell said he thought it was a real possibility, with the social networking company launching its own photo application. In fact, Mitchell — whose company does not have an application on Facebook — expressed concerns about putting his startup’s intellectual property on a third party platform. Not only could a company like Facebook copy the idea, but Mitchell said they gain access to all of the user data.

Perhaps Facebook has learned a thing or two about music through iLike, whose founder Ali Partovi likes to say that they are building the next MTV.

Meanwhile, PaidContent.org reports that the new Facebook music offering — which like MySpace would allow bands to set up individual pages — would incorporate the iLike service.